Budget 2014: Rs 37,800 crore highway fund to boost auto industry

Finance minister Arun Jaitley today announced allocation of Rs 37,000 for National and State highways across India with a specific sum of Rs 3,000 crore for Northeastern India in finance Budget 2014. This will include completion of construction of national highways worth Rs 8,500 crore this year. 

This gives a major boost to road infrastructure, which has been a major concern raised by car manufacturers. The development of roadways runs side-by-side with the growth of the auto industry, specifically the commercial vehicle industry. With a sizeable amount of the Budget 2014 corpus allocated towards expanding our road network, a direct positive impact could be seen on the automotive manufacturing industry in the medium term.    

The northeast region which is subject to harsh monsoons that deteriorate the condition of roads will welcome the specific allocation of Rs 3,000 crore. 

The Modi Government’s industry friendly outlook has given the automotive industry a new lease of life. With the extension of the relaxed excise duty norms to December 2014, there’s further cause for positive sentiment.